Question

BUSINESS CYCLES, UNEMPLOYMENT, AND INFLATION

IN-CLASS WORKSHEET 1

This question explores the identification of individuals in terms of their labor force and employment status. You will be provided introductions to different individuals and asked to classify them in one of these groups.

Task 1: Jenni is 27 years old. She currently splits her time between cleaning friends’ houses and working part-time at a local record store. Is Jenni in the labor force and/or employed?

Task 2: Jack is 63 years old. He recently retired from his job as a university administrator. Is Jack in the labor force and/or employed?

Task 3: Pedro is 46 years old. He recently lost his job as a police officer. He applied for a new job as a security consultant yesterday. Is Pedro in the labor force and/or employed?

Task 4: Alyssa is 27 years old. She is a full-time graduate student at the University of Iowa and she applied for a part-time job at a local café last week. Is Alyssa in the labor force and/or employed?

Task 5: Nick is 32 years old. He recently lost his job as an electrical engineer. He has been offered a new job, but he will not start that new job for 7 weeks. Is Nick in the labor force and/or employed?

Answer 1

(Task 1)

Part-time workers being considered as Employed by BLS, Jenny is included in labor force and is employed.

(Task 2)

Jack is retired, therefore not in the labor force and is not employed.

(Task 3)

Pedro is looking for a job, so is in the labor force. But since he does not hold a job, he is not employed.

(Task 4)

Full-time students are not considered as a part of the labor force, and she is not employed.

(Task 5)

Nick is in the labor force and is employed, since he has procured a job.